Story perspectives

44% of Parents Brace for Back-to-School Debt

7/25/2025

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Summary

Parents Facing Debt

A recent survey shows 44% of U.S. parents expect to take on debt for school supplies, a 10% increase from 2024.
39% of parents report being unable to afford back-to-school shopping, forcing cuts in essentials and activities.
Experts caution that ongoing tariffs may further raise prices, affecting lower- and middle-income families.
Retailers predict increased costs for school supplies, influencing consumer spending patterns.

Summary

Borrowers Face Reforms

The One Big Beautiful Bill Act, effective July 4, reforms federal student loans for 43 million borrowers.
The Biden-era SAVE plan concludes, leading to interest accrual for borrowers starting August 1.
Graduate loan limits are capped at $20,500 annually, potentially restricting access for lower-income students.
The new RAP repayment plan sets a $10 minimum monthly payment, raising default concerns for low-income borrowers.
Existing borrowers can utilize older plans like Income-Based Repayment (IBR), but forgiveness processing is paused due to legal challenges.

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Parents Facing Debt

A recent survey shows 44% of U.S. parents expect to take on debt for school supplies, a 10% increase from 2024.
39% of parents report being unable to afford back-to-school shopping, forcing cuts in essentials and activities.
Experts caution that ongoing tariffs may further raise prices, affecting lower- and middle-income families.
Retailers predict increased costs for school supplies, influencing consumer spending patterns.

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